Wednesday, October 17, 2012

Industrial Production v.2

Anonymous pointed out that my industrial production chart looked a lot like my Real GDP chart. It does!

Here's a new version that breaks the growth into two distinct periods (or even three depending on how you look at it).

Click to enlarge.

If the 1973 oil crisis permanently helped knock 1.8% off of our long-term industrial production growth, then one wonders if the 2008 oil crisis permanently helped knock off another 1.8%.

Put another way, who honestly thinks that we will return to the blue trend line?

Source Data:
St. Louis Fed: Industrial Production Index

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